How to develop a Swing Trade on EUR/NZD? Full Explanation
Good Morning Traders!
Today we detected a scenario with excellent potential in EUR / NZD and we want to share with you in detail our process to develop a setup in this pair.
First of all, we must clarify that it is a SWING setup, with a resolution of several days or probably weeks, so this vision does not imply that there cannot be movements against this vision in short-term micro trends.
Now, what can we detect in the Weekly Chart?
🔸 First, we observe that at the beginning of the year the price generated a great rejection in the area of the Ascending Channel, and also coincides with a supply area of 2011.
🔸 After that, the behavior was entirely bearish, until now it is facing / penetrating the Ascending Trendline of the channel that has been formed since 2017.
🔸 As we always say, we do NOT anticipate the price, nor do we seek to guess a direction. We simply react to behaviors that we consider to have a high probability of success.
🔸 What does that mean? It means that, in case of looking for a bearish trade in this pair, we will not simply operate a break of the trendline, that is only the first step of the confirmation.
What do we need to develop a setup?
Will be looking for the following scenario:
🔸 Moving to a lower timeframe (4H), we detected a breakout of the bearish channel and also the Support zone.
🔸 What we now expect is a corrective movement in the current zone, and if possible a retest to the broken Support zone (at that time it will be Resistance).
🔸 Once the corrective structure is formed, that will allow us to safely position our entry level, stop loss and take profit.
🔸 We always look for Risk / Reward ratios greater than 1.5.
Today we detected a scenario with excellent potential in EUR / NZD and we want to share with you in detail our process to develop a setup in this pair.
First of all, we must clarify that it is a SWING setup, with a resolution of several days or probably weeks, so this vision does not imply that there cannot be movements against this vision in short-term micro trends.
Now, what can we detect in the Weekly Chart?
🔸 First, we observe that at the beginning of the year the price generated a great rejection in the area of the Ascending Channel, and also coincides with a supply area of 2011.
🔸 After that, the behavior was entirely bearish, until now it is facing / penetrating the Ascending Trendline of the channel that has been formed since 2017.
🔸 As we always say, we do NOT anticipate the price, nor do we seek to guess a direction. We simply react to behaviors that we consider to have a high probability of success.
🔸 What does that mean? It means that, in case of looking for a bearish trade in this pair, we will not simply operate a break of the trendline, that is only the first step of the confirmation.
What do we need to develop a setup?
Will be looking for the following scenario:
🔸 Moving to a lower timeframe (4H), we detected a breakout of the bearish channel and also the Support zone.
🔸 What we now expect is a corrective movement in the current zone, and if possible a retest to the broken Support zone (at that time it will be Resistance).
🔸 Once the corrective structure is formed, that will allow us to safely position our entry level, stop loss and take profit.
🔸 We always look for Risk / Reward ratios greater than 1.5.
Feragatname
Bilgiler ve yayınlar, TradingView tarafından sağlanan veya onaylanan finansal, yatırım, işlem veya diğer türden tavsiye veya tavsiyeler anlamına gelmez ve teşkil etmez. Kullanım Şartları'nda daha fazlasını okuyun.